MyMoney Online

The one BIG thing we should learn from the budget

The 2015 budget proposal confirmed that we as a nation are between a rock and a hard place. It was clear that the minister needed to find every smidgeon of revenue (the rock) and try to curb expenditure (the hard place) with very little room to manoeuvre.

The principles followed in the national budget are no different from our own personal budget. Income needs to cover expenses. If you cannot increase income you either borrow more ( not so easy when you are already stretched) or you tackle expenses. So the one big thing we should take from the budget is that we will need to get our own households in order, in the face of the pending tax increases.

The tax scales for the next year have not compensated for inflation so we are all worse off from the start. Add to this the waive if items where taxes were increased, namely:

Petrol Electricity Alchohol Tobacco

Then still to come is the effect of the fuel levy on inflation which is bound to take away the brief respite we were having from the drop in the oil price.

The average South African household is already struggling and income streams for those lucky enough to be employed are limited.

So the one and only thing to do is become our own ‘Minister of Finance’ and make an extraordinary attempt to tackle our expenses and cut the cloth accordingly.

Tough economic times call for tough economic measures. The National Budget has laid down the cards. We need to play them diligently.

Read more from Paul Roelofse at www.investforlife.co.za


This article first appeared on 702 : The one BIG thing we should learn from the budget


Recommended

by NEWSROOM AI
Read More
4 tips for safely investing right now when everything is so hectic

4 tips for safely investing right now when everything is so hectic

Bruce Whitfield asks Personal Financial Advisor Warren Ingram for advice on how investors can safely navigate this hectic time.

3 best shares to buy right now (by 27Four)

3 best shares to buy right now (by 27Four)

Investment Analyst Nadir Thokan shares his stock picks of the week on Bruce Whitfield’s The Money Show.

How to retire (or stop working for money) by the age of 40

How to retire (or stop working for money) by the age of 40

Warren Ingram recaps the principles “supersaver” Julia, a young client of his well on her way to financial freedom, is following.

3 hottest shares on the JSE this week (by JM Busha Investment)

3 hottest shares on the JSE this week (by JM Busha Investment)

It’s “Stock Pick Monday” on The Money Show. Bruce Whitfield interviews Joseph Busha, Managing Director at JM Busha Investment.

5 dumbest things people in their 20s do with money

5 dumbest things people in their 20s do with money

Sam Beckbessinger, the author of “Manage Your Money like a F*cking Grownup,” has some tips, so you don’t have to live with regret.

What #Budget2015 means for the South African walking on the street

What #Budget2015 means for the South African walking on the street

We hit the streets to find out what South Africans want to hear from Minister Nhanhla Nene's budget speech later today.

Popular articles
[LISTEN] Cape Town businesswoman targeted in fake invoice scam

[LISTEN] Cape Town businesswoman targeted in fake invoice scam

Jacqui Kaminer says banking officials were unable to investigate the matter further because police failed to open a case for her.

Stealthing: a form of rape, says Dr Tlaleng

Stealthing: a form of rape, says Dr Tlaleng

'Stealthing' is the act of discreetly removing the condom without the knowledge or consent of the other party during sex.

Two young boys go the extra mile to get a sick dog to a vet with just R7

Two young boys go the extra mile to get a sick dog to a vet with just R7

Peter and Jerry gave up their last R7 to get a sick community dog (Lady) to an Animal Welfare shelter for medical attention.

Derelict buildings in Parow earmarked for social housing

Derelict buildings in Parow earmarked for social housing

The affordable rental units will be made available for families with a monthly household income of up to R15 000.

'Almost alcoholics' - the blurred lines between social drinking and alcoholism

'Almost alcoholics' - the blurred lines between social drinking and alcoholism

Sobriety advocate Janet Gourand explains the differences between the social drinker and an almost alcoholic.